Merger Analysis

Merger Analysis

Introduction

Mergers and acquisitions are one of the fundamental and the prominent strategies of today's business. It is considered as the most important aspect of today's finance world. It is observed that, large number of organizations is trying to merge their businesses in order to make their business more stable. Mergers and acquisitions are encouraged for several reasons including increased size of an organization and chances of organizational growth. Furthermore, mergers and acquisitions may also help the enterprises to reduce the overall cost. Although, the integration of organizations or businesses is not an easy task and in some situations it may also give unsatisfactory results, but organizations are focusing on mergers and acquisitions. It is due to the reason that, they need to enhance their productivity while reducing the overall cost per unit. The study incorporates the idea, that why the organizations are trying to merge their businesses with other organizations even when they are not getting satisfactory results. Moreover, the study also incorporates the idea that why the value creation and capabilities are so interlinked with the innovation and technology management (Andrade, Mitchell & Stafford, 2001)

In the current era of development and market competition, large number of organizations are emphasizing on the mergers and acquisition. It is a fact that integration of businesses or organization is not an easy task and may give unsatisfactory results to the organizations. Although in this situations, companies are showing high interest to get merge with other businesses. The main reasons behind these mergers may include the reduced or minimized costs and investments. It is due to the reason that, mergers may allow the organizations to minimize many of its expenses. Budgets for the several areas like marketing might get reduced, while the new, bigger organization can enjoy greater buying power. In addition to this, mergers and acquisition may also allow the organizations to access large number of customers. Moreover, the mergers of organizations may also help the businesses to provide wide range of services and products. This may significantly boosts up the revenue of the organizations. These reasons lead the organizations to get merge with other businesses and organizations (Andrade, Mitchell & Stafford, 2001).

Discussion

There are many financial drivers that may cause the organizations in the health care to merge. One of the major financial drive can be the lack of funds. If any organization does not have sufficient funds then it might go for the merger. Similarly, if the organization in the health care is making losses than it should than it should go for the merger. The organization in the health care might also go for the merger if they have inappropriate resources or staff. These are the major reasons due to which most of the organizations in the health care prefer to form merger. Recently many organizations in the health care went into the mergers because they had not proper resources in their hand. Similarly, they had not proper funding due to which they were not able to run the ...